Q Results Briefing 12 November 2018

Transcription

1 Q Results Briefing 12 November 2018

2 CONSOLIDATED FINANCIAL HIGHLIGHTS In million Php, except ratios Q Q Q YTD 2018 Q Q Q YTD 2017 Variance Revenues 11,430 12,529 6,910 30,868 10,351 9,477 12,106 31,933-3% Coal 8,354 7,484 1,836 17,674 6,778 4,342 5,901 17,021 4% Power 3,076 5,045 5,073 13,195 3,572 5,135 6,205 14,912-12% Depreciation 1,774 2,156 1,784 5,713 1,208 1,518 1,689 4,416 29% Coal 871 1, , ,088 2,638 12% Power , ,777 56% EBITDA 6,562 6,032 2,937 15,531 6,032 5,342 5,995 17,368-11% EBITDA Margin 57% 48% 43% 50% 58% 56% 50% 54% -7% NIAT 4,574 3, ,908 4,423 3,441 3,688 11,552-23% EPS % CAPEX 2,531 2,116 2,686 7,333 2,013 2,050 1,653 5,716 28% SMC 1,662 1,232 1,788 4, ,591 1,334 3,867 21% SCPC , ,235 82% SLPC % Cash 6,589 2,306 2,329 2,329 9,506 5,271 3,505 3,505-34% Free Cash Flow 2,225 (315) (1,420) 490 1,603 1,778 2,367 5,749-91% Net Debt 12,887 13,429 14,880 14,880 8,518 11,694 14,677 14,677 1% Net Debt/EBITDA % ROE (YoY) 12% 9% 2% 22% 12% 9% 10% 33% -34% DE Ratio % Current Ratio %

3 SEGMENT FINANCIAL HIGHLIGHTS Operating businesses Coal SCPC SLPGC YTD 2018 YTD 2017 Variance YTD 2018 YTD 2017 Variance YTD 2018 YTD 2017 Variance Revenues (In M Php) 22,752 21,022 8% 9,763 9,386 4% 3,431 5,526-38% Ave. Price (In Php) 2,744 2,141 28% % % Cost of Sales - MT/Kwhr (In M Php) 1,353 1,051 29% % % Gross Margin/Unit (In Php) 1,391 1,090 28% % % Core NIAT (In M Php) 7,434 6,837 9% 804 2,216-64% 582 2,516-77% Cash Balance End (In M Php) 384 1,755-78% % 1,228 1,563-21% Interest Bearing Loans (In M Php) 5,851 7,516-22% 5,000 2,600 92% 6,370 8,066-21% Retained Earnings, End (In M Php) 20,021 15,900 26% 6,387 7,466-14% 4,867 4,697 4% Net Working Capital (In M Php) 7,623 4,005 90% 1,723 (598) 388% 1,152 3,444-67% EBITDA (In M Php) 12,576 10,651 18% 3,209 4,183-23% 1,731 3,631-52% 3

4 YTD Q VOLUME SOLD vs COST OF SALES COAL SCPC 12,000 2, ,000 11,000 1, ,000 10,000 1, ,353 1, ,000 9,000 11,215 1, ,000 4,000 1, , ,000 6, ,000 5, ,292 1,000 4, , YTD Volume Sold ('000 MTs) Cost of Sales (million Php) Cost of Sales/ton , , YTD Volume Sold (GWh) Cost of Sales (million Php) Cost of Sales/KWh SLPGC 3, , , , , ,000 2, YTD Volume Sold (GWh) Cost of Sales (million Php) Cost of Sales/KWh Coal COS is at higher level, given Strip ratio of 12.4:1. Higher global NewCastle coal index pushed up power COS. 4

5 CONSOLIDATED REVENUES AND NIAT YTD Q vs YTD Q in billion Php Gross Revenues NIAT % 23% Coal SCPC SLPGC 3% in revenues, 23% in NIAT. Lower coal production in Q3 translates to weaker coal profitability; prolonged outage of Unit 3 resulted to decline in SLPG s earnings; accelerated depreciation pulled down SCPC s income. 5

6 In Billion Php CASH GENERATION & UTILIZATION - CONSOLIDATED YTD Q in billion Debt Availment Php4.0 Cash Generation Php7.8 Cash Dividends Php5.3 Debt Repayment Php Cash Beginning Php8.5 GENERATION Capex Php7.3 Shares Buyback Php0.3 Cash End Php2.3 UTILIZATION 6

7 CONSOLIDATED ASSETS, LIABILITIES, & EQUITY FY 2017 (Audited) vs YTD Q (Unaudited) in billion Php (10) 0 2% 15% 9% ASSETS LIABILITIES EQUITY (0) (1) Coal SCPC SLPGC Others 7

8 COAL PRODUCTION YTD Q vs YTD Q Materials Moved in million bcm Coal Production in million tons S/R S/R % in materials moved, 10% in coal production. Increase in materials moved is due to increase in excavating capacity. Coal production is inclusive of low-grade coal of 986K tons and 890K tons in Q YTD and Q YTD, respectively.

9 COAL PRODUCTION Q1 Q2 Q3 Variance Q3 vs Q1 Variance Q3 vs Q2 Total Materials (M BCM) % -17% Overburden (M BCM) % -16% Coal Production (MMT ) % -46% Strip Ratio % -55% Ending Inventory % -55% Clean coal % -55% Unwashed Coal ('000 tons) % -55% Total Costs % -4% Less: Cost attributable to Mine Rehab % -21% Net Production Costs (Billion) % -2% Production Cost per MT 969 1,264 2, % -87% Cost per BCM % -23% COST PER MT 4,000 3,000 2,000 1, MMT SR: /MT YTD S/R: 12.4 SR: MMT 1,264/MT SR: ,347/MT 1.7 MMT Q1 Q2 Q3 STRIP RATIO Production Cost per MT Strip Ratio

10 REVENUE (billion Php) / VOLUME (million tons) 10 COAL SALES YTD Q vs YTD Q ASP 2, Rev 2018 Vol 2018 Rev 2017 Vol 2017 Php22.75 B 8.29 M tons Php21.02 B 9.85 M tons ASP 2, POWER CEMENT OTHERS EXPORT 16% in volume sold, 28% ASP. Lower coal production in Q3 resulted to lower volume sold. Higher average selling price per ton offset the drop in sales volume, resulting to an increase in coal revenues by 8%.

11 11 COAL SALES MIX YTD Q vs YTD Q % 41% 51% 39% 5% 7% 4% 7% 8.3 M tons 9.8 M tons 41% 42% 54% 35% 6% 10% 4% 7% Php 22.8 B Php 21.0 B Power Cement Others Export 1% off-take of Power Plants, 13% Cement, 27% Other Plants, 34% exports. Total local sales increased by 3%; drop in exports is a result of lower production.

12 12 SCPC POWER PLANTS PERFORMANCE YTD Q vs YTD Q ,000 2,500 2,000 1,500 1, Gross Gen, Total Plant Ave. Capacity, Total Plant in GWh 9% in MW , ,287 1, ,658 Unit 2 Unit % Capacity Factor, Total Plant 70% 60% 50% 40% 30% 58% 63% 20% 10% 0% 9%

13 13 SCPC POWER PLANTS AVAILABILITY & OUTAGES YTD Q vs YTD Q ,000 9,000 Availability (Hours) TP 72% TP 70% 2% 7,000 51% 93% 5,000 3,000 90% 1,000 51% (1,000) Unit 1 6,107 3,344 Unit 2 3,360 5,924 Total (Hrs) 9,467 9,268 Planned Outage, Hrs Variance Unit 1-1, % Unit 2 1, Total Plant 1,824 1, % Unplanned Outage, Hrs Variance Unit ,696 72% Unit 2 1, % Total Plant 1,861 2,348 21%

14 14 SCPC ENERGY SALES YTD Q vs YTD Q Variance BCQ Revenue, Net (in M Php) 9,122 8,872 3% BCQ Volume Sold (GWh) 2,182 2,352-7% BCQ, Ave Price (in Php) % Spot Sale (in M Php) % Spot Volume Sold (GWh) % Spot Sales, Ave Price (in Php) % Total Revenue (in M Php) 9,763 9,386 4% Total Volume Sold (GWh) 2,359 2,508-6% Composite Ave. Price (in Php) % 11% in ASP, 6% volume sold. Unit 2 is on maintenance shutdown the whole of Q until the first week of April, while Unit 1 was on maintenance shutdown in Q Increase in ASP is due to higher global NewCastle benchmark coal prices.

15 SCPC ENERGY SALES MIX YTD Q vs YTD Q % 8% 0% 6% 5% 5% 91% 84% 2,359 GWh 1%7% 0% 2,508 GWh 5% 6% 5% 92% 85% Php 9.76 B Php 9.39 B Meralco Batelec I Spot Others Meralco remains to be the single biggest customer of the Company, accounting for 91% of sales volume and 92% of revenues. Power supply contracts total to MW - Meralco (250 MW), MPower (170MW), and ECSCO (0.45 MW). 15

16 16 SLPGC POWER PLANTS PERFORMANCE YTD Q vs YTD Q ,500 1, Gross Gen, Total Plant in GWh , Ave. Capacity, Total Plant in MW 44% 11% Unit 4 Unit Capacity Factor, Total Plant 70% 60% 50% 40% 70% 30% 20% 39% 10% 0% 44%

17 17 SLPGC POWER PLANTS AVAILABILITY & OUTAGES YTD Q vs YTD Q ,000 10,000 Availability (Hours) TP 79% 41% 8,000 6,000 4,000 2,000 82% TP 47% 19% 75% 76% Planned Outage, Hrs Variance Unit % Unit ,080-81% Total Plant 876 1,824-48% - Unit 3 1,234 5,389 Unit 4 4,909 5,013 Total 6,144 10,403 Unplanned Outage, Hrs Variance Unit 3 5, ,206% Unit % Total Plant 6, %

18 SLPGC ENERGY SALES YTD Q vs YTD Q Variance BCQ Revenue, Net (in M Php) 2,398 4,245-44% BCQ Volume Sold (GWh) % BCQ, Ave Price (in Php) % Spot Sale (in M Php) 1,033 1,281-19% Spot Volume Sold (GWh) % Spot Sales, Ave Price (in Php) % Total Revenue (in M Php) 3,431 5,526-38% Total Volume Sold (GWh) 773 1,309-41% Composite Ave. Price (in Php) % 5% in ASP, 41% volume sold. Higher ASP slightly offset drop in volume sold; revenues dropped by 38%.

19 19 SLPGC ENERGY SALES MIX YTD Q vs YTD Q % 17% 39% 14% 17% 31% 38% 773 GWh 1,309 GWh 30% 22% 48% 18% 23% 15% 44% Php 3.43 B Php 5.53 B MPower GNPower Spot VECO SMEC MPower is the single biggest customer of SLPGC, accounting for 39% of sales volume and 48% of revenues. Power supply contracts total to 100 MW (MPower).

20 APPENDIX 20

21 COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - COAL For the period ending September (in million PhP) Q1 Q2 Q3 YTD 2018 Q1 Q2 Q3 YTD 2017 Variance Revenue 9,523 9,108 4,121 22,752 8,135 5,319 7,568 21,022 8% Costs of Sales 3,453 4,337 3,425 11,215 3,206 2,524 4,622 10,351 8% Gross Margin 6,069 4, ,537 4,929 2,794 2,946 10,670 8% Gross Profit Ratio 64% 52% 17% 51% 61% 53% 39% 51% 0% Govt Share 1,510 1,355 (23) 2,842 1, ,063 3,025-6% Gen & Admin Exp % OPEX 1,644 1, ,418 1, ,327 3,495-2% 4,426 3, ,119 3,551 2,005 1,619 7,175 13% Other Exp/(Inc) % Income bef tax 4,252 2, ,446 3,399 1,920 1,524 6,843 9% Income Tax % Core Income 4,248 2, ,434 3,397 1,918 1,522 6,837 9% Profitability Ratio 45% 32% 6% 33% 42% 36% 20% 33% 0% *Before eliminating entries 21

22 COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SCPC For the period ending September (in million Php) Q Q Q YTD 2018 Q Q Q YTD 2017 Variance Revenue 2,102 3,589 4,072 9,762 2,422 2,943 4,022 9,386 4% Contracted Energy 2,076 3,281 3,771 9,128 2,423 2,698 3,764 8,885 3% Spot Sales % PPD (5) (1) (1) (7) (5) (4) (5) (14) -50% Cost of Energy Sales 1,233 2,562 2,797 6,591 1,169 1,869 2,217 5,255 25% Generation Cost 874 1,906 2,227 5, ,373 1,700 3,902 28% Depreciation and Amortization % Replacement Power Cost % Marketing and NGCP Cost % Gross Profit 869 1,027 1,275 3,171 1,253 1,074 1,805 4,132-23% GP Ratio 41% 29% 31% 32% 52% 36% 45% 44% -26% Other Cost/Expense/Income , % General, Admin. and Other OPEX , % Finance (Income)/Costs 69 (2) % Foreign Exchange Gains/(Losses) % Other Income (10) (34) (48) (91) (24) (32) (40) (96) -6% Net Income Before Tax , ,517 3,168-64% Provision for Taxes % Net Income After Tax ,062 2,216-64% Profitability Ratio 3% 9% 11% 8% 28% 16% 26% 24% -65% *Before eliminating entries

23 COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SLPGC For the period ending September (in million Php) Q Q Q YTD 2018 Q Q Q YTD 2017 Variance Revenue 974 1,456 1,001 3,431 1,148 2,194 2,184 5,526-38% Contracted Energy 858 1, , ,372 1,940 4,245-44% Spot Sales , ,281-19% PPD (0) - 0 (0) -100% Cost of Energy Sales , ,292-7% Generation Cost ,171-24% Depreciation & Amortization % Replacement Power Cost % Marketing Cost % Gross Profit , ,378 1,348 3,234-60% GP Ratio 43% 39% 32% 38% 44% 63% 62% 59% Other (Cost)/Income (269) (225) (192) (686) (149) (307) (218) (674) 2% General, Admin. and Other OPEX (238) (130) (138) (506) (91) (264) (166) (521) -3% Finance Income/(Costs) (36) (97) (82) (214) (61) (68) (67) (196) 9% Foreign Exchange Gains/(Losses) 0 (1) (0) (1) Other Income % Net Income Before Tax ,071 1,130 2,560-76% Provision for Taxes % Net Income After Tax ,037 1,121 2,516-77% Profitability Ratio 15% 23% 10% 17% 31% 47% 51% 46% *Before eliminating entries 23

24 COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - CONSOLIDATED For the period ending September (in million PhP) Accounts YTD YTD VARIANCE SMPC SCPC SLPC SMPC SCPC SLPC Favorable (in million) SEP 2018 SEP 2017 /(Unfav) Coal 17, ,674 17, ,021 4% Power - 9,763 3,431 13,195-9,386 5,526 14,912-12% - - REVENUE 17,674 9,763 3,431 30,868 17,021 9,386 5,526 31,933-3% Coal 8, ,863 7, ,616-16% Power - 4,325 1,548 5,873-4,144 2,136 6,280 6% - - COST OF SALES 8,863 4,325 1,548 14,736 7,616 4,144 2,136 13,896-6% GROSS PROFIT 8,811 5,439 1,883 16,132 9,404 5,242 3,390 18,037-11% GP Ratio 50% 56% 55% 52.3% 55% 56% 61% 56.5% -7% Gen Admin Expenses 576 1, , ,947-56% Government share 2,842 2,842 3,025 3,025 6% Interest expense % Interest income (60) (14) (29) (102) (40) (6) (28) (74) -38% Forex (gain) losses % Other (income) exp (9) (91) (36) (136) (80) (96) (44) (220) 38% Total 4,091 2, ,823 3, ,483-24% Income before tax 4,719 3,420 1,197 9,309 5,577 4,278 2,715 12,553-26% Income tax ,002 60% NET INCOME 4,708 3,071 1,155 8,908 5,571 3,327 2,671 11,552-23% Net Income Ratio 27% 31% 34% 29% 33% 35% 48% 36% -20% *After eliminating entries 24

25 COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of September 2018 (Unaudited) vs December 2017 (Audited) In million PhP Balance Sheet AS OF AS OF variance SMPC SCPC SLPC (in million) SEP 2018 DEC 2017 % ASSETS Current asstes Cash and Cash Equivalents ,228 2,329 8,471-73% Receivables - net 1,468 4, ,224 6,475-4% Inventories - net 6,068 1,878 1,401 9,347 5,914 58% Investment in joint venture % Other current assets 1,709 1, ,694 3,423 8% Total Current Assets 9,688 7,842 4,064 21,653 24,334-11% Non current assets Property, plant and equip 11,943 14,942 16,972 43,856 43,014 2% Other noncurrent assets - net , % Deferred tax asset % Total Noncurrent Assets 12,234 15,379 17,960 45,573 44,263 #DIV/0! 3% TOTAL ASSETS 21,922 23,221 22,024 67,226 68, % *After eliminating entries 25

26 COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of September 2017 (Unaudited) vs December 2017 (Audited) In million PhP Balance Sheet AS OF AS OF variance SMPC SCPC SLPC (in million) SEP 2018 DEC 2017 % LIABILITIES AND EQUITY Current Liabilities Accounts and other payables 5,267 1, ,849 10,851-28% Short-term loans - 2,000-2, % Long-term debt - current 131-1,704 1,835 3,556-48% Total Current Liabilities 5,399 3,788 2, ,684 14,407-19% Noncurrent Liabilities Long-term debt - net of current 5,720 2,987 4,666 13,374 14,469-8% Pension liability % Provision for site rehabilitation ,706-68% Deferred tax liabilities % Other Long-Term Liabilities % Total Noncurrent Liabilities 6,457 3,026 5,044 14,527 16,510-12% TOTAL LIABILITIES 11,856 6,814 7,540 26,211 30,917-15% STOCKHOLDERS' EQUITY Total stockholders' equity 27,130 8,653 5,437 41,015 37,679 9% LIABILITIES & EQUITY 38,986 15,468 12,977 67,226 68, % *After eliminating entries 26

27 CONSOLIDATED LOAN PROFILE In Millions 27 Business Segment Dec 2017 Availment Jan-Sep Payment Sep 2018 Coal (USD) Coal (Php Equivalent) 3,412 1,198 2,387 Coal (Php) 3,988 2,512 3,464 Total Coal (Php) 7,400 1,988 3,711 5,851 SCPC (Php) 3,000 2,000-5,000 SLPGC (Php) 7,640-1,266 6,362 TOTAL (Php) 18,040 3,988 4,977 17,213

28 DISCLAIMER Semirara Mining and Power Corporation (the Company ) and its advisors assumes no responsibility or liability regarding actions or decision that may be taken regarding any information resulting from unintentional errors or omissions contained in this document. In addition, this document contains financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements are subject to risks and uncertainties that may cause actual events and the Company s future results to be materially different than expected or indicated by such statements. No assurance can be given that the results anticipated by the Company, or indicated by any such forward looking statements, will be achieved. This document is not an offer to sell securities or a solicitation of an offer to buy securities. 28